"Digital Disruption" : are competitive forces in the book publishing marketplace contributing to the utility maximization of consumers' purchasing and price options for ebooks? : An analysis of emerging economic models

Abstract

The proliferation of ebooks and ebook readers is causing a digital disruption in the publishing industry as consumers alter their reading and purchasing behaviours. This research paper attempts to determine if those same consumers are being fairly served by the current pricing practices for ebooks. It also looks at the “invisible hand” of economist Adam Smith to see if there are sufficient checks and balances to create a fair and competitive environment for consumers. The thesis revolves around four fundamental questions for the book publishing industry. Is it possible to have a state of utility maximization under the current economic conditions? Are there sufficient competitive mechanisms to sustain such a state? What is the right pricing model – or models – for ebooks? More broadly, is the current publishing industry sustainable?